Series 6: 8.3.1. Settlement Instructions

8.3.1. Settlement Instructions

If settlement instructions are not otherwise established when the account is opened, securities transactions must be settled regular way. For stocks, corporate bonds, and municipals, this means two business days following the trade date (T + 2). For government securities and options trades, it is one business day following the trade date (T + 1). Remember that customers get two additional days to pay, but broker-dealers must pay by the settlement date. For the exam, be sure you understand the differences between the trade date, declaration date, ex-date, record date, and settlement date. These can be found in Chapter Two.

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